- Green Member
- Posts: 18
- Joined: Thu Jun 18, 2015 9:02 am
Some background: 3 Student Loans and 1 CCard
Loan Type, Amount, Interest Rate
Private Loan - $40,000 - 5.04% Variable
Fed Loan 1 - $13,000 - 5.125% Fixed
Fed Loan 2 - $2,500 - 5.00% Fixed
Credit Card - $3,500 - 0% until August 2016, then 22%
A caveat on Fed Loan 2 and question: I had a few missed payments on this loan back in Q4 2014 / Q1 2015, so my credit report is showing these 90 and 120 day missed payments and it obviously looks bad (the original payments were set up quarterly, but when I got serious about my financial situation earlier this year I had them changed to monthly and have been on time ever since.) My question is, would it look better to pay the loan off quicker to get it over with or stretch it out to get more "good" history on it before it closes out?
Every article I read discusses different methods of repayment dependent on Interest Rate, but mine are all essentially the same. After budgeting hardcore, I have determined that I have approximately $1600-$1800 per month that I can put towards my $59k debt, but I am trying to determine where the money should go towards. Part of me wants to Snowball Method it and get FL2 out of the way but the above question I asked gives me pause. Part of me wants to pay more towards the bigger loan. Maybe because the interest rates aren't much different it doesn't make a difference. I don't know. Any recommendations would be appreciated...Thank you much in advance.